• Pakistan plans a rupee-backed stablecoin to harness its $25B crypto potential and strengthen financial inclusion.
• Collaboration with the IMF and World Bank supports a CBDC prototype to modernize digital payments.
• The new Virtual Asset Regulatory Authority oversees licensing and compliance for digital asset providers.

Pakistan is examining the creation of a rupee-backed stablecoin as authorities assess a growing $25 billion opportunity within the digital asset market. The initiative follows a rise in cryptocurrency adoption across the country, with Pakistan advancing six places to rank third in Chainalysis’ Global Crypto Adoption Index for 2025. Officials believe that structured regulation could help Pakistan secure significant economic gains from blockchain-based innovations.

Expanding Focus on Digital Finance

At the Sustainable Development Policy Institute Conference, Pakistan Banks Association President Zafar Masud stated that delays in regulating digital assets may result in major financial losses. He emphasized that Pakistan’s young population and expanding digital economy provide strong potential for growth in blockchain solutions. Masud explained that a rupee-backed stablecoin could help stabilize digital transactions and increase financial access across various sectors.

Masud also discussed the global momentum surrounding stablecoins and indicated that Pakistan is closely reviewing global models before finalizing its approach. He noted that the introduction of a Central Bank Digital Currency could lower remittance costs and improve access to formal financial systems.

The Deputy Director of Payments at the State Bank of Pakistan, Faisal Mazhar, assured that the development of a digital currency by the central bank is being tested among the International Monetary Fund and the World Bank. He said that a development phase would precede the nationwide rollout. The project is designed to upgrade the financial system of Pakistan and to secure it under the international rules.

Private Sector Developments and Inclusion Goals

In a simultaneous move, local fintech startup ZAR has revealed its ambition to release stablecoins backed by the dollar aimed at the common user. The firm wants to make stable digital assets available for the whole population of Pakistan, which includes over 100 million adults who do not have a bank account, out of a total of 240 million. 

Following the recent funding rounds in emerging markets, which saw participation from Andreessen Horowitz, VanEck Ventures, Coinbase Ventures, and Dragonfly Capital, a new wave of interest emerged. Pakistan’s government is constantly changing its regulations regarding digital assets. 

Under the Virtual Assets Ordinance of 2025, the Pakistan Virtual Asset Regulatory Authority was established and has started issuing licenses and regulating Virtual Asset Service Providers. The authority guarantees adherence to the standards of the Financial Action Task Force and the global best practices. Thus, through such United efforts, Pakistan’s ambition in the financial technology sector and in the global digital asset market is to get recognized.